Entries for Bank Reconciliation The following data were accumulated for use in reconciling the bank...
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Entries for Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 2016: 1. Cash balance according to the company's records at August 31, $12,920. 2. Cash balance according to the bank statement at August 31, $56,300. 3. Checks outstanding, $25,390. 4. Deposit in transit not recorded by bank, $13,325. 5. A check for $150 in payment of an account was erroneously recorded in the check register as $1,500 6. Bank debit memo for service charges, $35. Journalize the entries that should be made by the company that () Increase cash and (b) decrease cash. If an amount box does not require an entry, leave it blank. a. 2016 Aug 31 Cash Accounts Payable b. Aug. 31 Miscellaneous Expense Cash Feedback Check My Work Keep in mind that the company needs to journalize any adjusting items in the company section of the bank reconciliation, because these have not been previously recorded by the company. Debit meno items like bank service charges decrease Cash. If the company made an error that understates cash in the company section, the journal adjustment would increase Cash
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